Moody’s downgrades SCE&G, Scana

Moody’s Investors Service said it downgraded the senior unsecured ratings of South Carolina Electric & Gas Co. (SCE&G) to Baa3 from Baa2 and the senior unsecured ratings of Scana Corp. to Ba1 from Baa3.

The agency also continued the review for downgrade that began on Nov. 1, 2017.

Moody’s said the action follows the South Carolina House of Representatives overwhelming passage of H 4375, a bill that, if enacted, would temporarily repeal the rates SCE&G is collecting under the Base Load Review Act for its abandoned nuclear investment.

"The downgrade of SCE&G and Scana is driven by a political and regulatory environment that has become exceedingly contentious and uncertain, and our assumption that SCE&G will ultimately be required to make considerable rate concessions to move forward,” Laura Schumacher, senior credit officer, said in a news release.

"Although we recognize H 4375 has not yet been signed into law, the bill has the full support of the governor, and at least some members of the Senate, which was contemplating similar legislation.”

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